Gold prices have probably peaked this year and could sink to their lowest since 2010 at $1,100 an ounce as the U.S. economic recovery gathers pace, consultancy Metals Focus said on Wednesday.

The consultancy expects silver prices to average just under $20 an ounce this year, not far from current levels but well below last year's average of around $23.80 an ounce, as its fundamentals weaken.